Form an LLC in Maine.

$49 + State Fee & 1st Year FREE Registered Agent

Your LLC’s Name

Your new Maine LLC’s name must be distinguishable from the registered, reserved, assumed, and fictitious names of other business entities already on file with the state. The LLC’s name must include at its end the terms “Limited Liability Company,” “L.L.C.,” or “LLC.” The name is not allowed to include the words “corporation” or “incorporated” or their abbreviations.

Available LLC names can be reserved with the Maine Secretary of State’s office for a $20 fee.

Articles of Organization

After your Maine LLC is named, you must file articles of organization with the Corporate Examining Section of the Maine Secretary of State’s office, along with a $175 filing fee. The articles must be executed (signed) by at least two persons organizing the LLC and the registered agent, and delivered (one original and a copy) to the Maine Secretary of State’s office.

A certificate of organization will be issued and delivered along with the conformed copy to the LLC’s representative(s). The original articles of organization will in turn be filed with the Secretary of State along with the month, day and year of filing.

The articles of organization for your new Maine LLC must include the following information:

The LLC’s name

The LLC’s principal office address

The street address (including county) of the LLC’s registered office

The name and street address of the registered agent

Whether the LLC will be member-managed or manager-managed

A minimum and maximum number of managers permitted

The name and business, residence, or mailing address of each initial manager, if any have been selected

The registered agent must also sign to indicate acceptance of the appointment.

The articles may also include other items that the members wish to include (as long as they don’t conflict with state law), even if they are also included in the operating agreement.

Registered Agent and Office

All Maine LLCs are required to continuously maintain a registered in-state agent and office. This agent is the person designated to receive official state administrative and legal correspondence.

A registered agent in Maine may be an individual state resident whose business or residential address is the same as the LLC’s registered office, or a business entity that is authorized to do business in the state and whose registered office also serves as the registered office of the LLC.

The registered office may be (but is not required to be) the LLC’s place of business.

Operating Agreement

Nearly as important to the LLC as its articles of organization is the operating agreement. Maine doesn’t have a legal requirement for an LLC to have an operating agreement, but it’s a vital internal document that specifies how your LLC will operate on all levels.

The operating agreement should list the LLC’s members, specify how much each one has invested, explain how profits will be divided, and state how much proportional “weight” each member has when issues are voted upon-this is known as “members in interest.” Unless the articles of organization or the operating agreement say otherwise, voting power in a member-managed LLC is vested in each member according to his or her current capital account balance with the LLC.

The operating agreement may also set forth meeting requirements such as the amount of required notice, what constitutes a quorum, voting rules, and so on, but it doesn#8217;t have to. Normally, however, the operating agreement does list requirements for the LLC that are already listed in state law and regulations. It can also include such items as restrictions or constraints on the power of the members to adopt, amend, or repeal the operating agreement.

If there is more than one member, the operating agreement must initially be approved unanimously in writing by the members.

Membership in the LLC

Unless otherwise provided in the articles or operating agreement, managers are elected for an indefinite term and removed and replaced by a majority (per capita) vote of the members.

An LLC is required to have at least one member, who may be may be an individual or a legal entity. Members may become a member of or acquire an interest in the LLC when it is first started, or with the written consent of all the members.

To join the LLC, the prospective member usually needs to make some kind of contribution-for example, pay cash, transfer tangible or intangible property to, or perform services for the LLC-or undertake a binding obligation (such as a promissory note) to do so.

Unless stated otherwise in the operating agreement, an LLC member can withdraw or resign at any time upon 30 days’ advance notice to the other members. If a member’s withdrawal is in violation of the operating agreement, the member can be held responsible for financial damages caused by their withdrawal.

Ongoing Requirements

Maine LLCs must file an annual report with the Secretary of State that lists:

The LLC’s name

The name of the LLC’s registered agent

The address of the LLC’s registered office in Maine, including the street or rural route number, town or city, and state

A brief statement of the character of the business in which the LLC is actually engaged, if any

The name and address of each manager or, if none, each member, including the street or rural route number, town or city, and state

Each LLC must keep the following records available for inspection at its office:

An alphabetical list of all current and former members and managers and their mailing addresses

A copy of the articles of organization, with any amendments and related powers of attorney

Copies of the LLC’s federal, state and local income tax returns and financial statements, if any, for the past six years

Copies of current and former operating agreements and amendments

Unless stated in the operating agreement or articles of organization, the amount of cash and the agreed-upon value of other property or services contributed by each member

The times and/or events that would trigger additional contributions by the members

Any events that would trigger the LLC’s dissolution and the winding up of its operations

Also, it’s a good idea to keep on file and available the minutes of the meetings of any committees of the managers or members.

Dissolution

An LLC is dissolved when any one of the following events occurs:

Event(s) specified in the articles of organization or operating agreement

Written agreement or consent of all the members to dissolve

An event that makes it unlawful for the LLC to continue

The LLC’s duration as specified in the articles of organization or the operating agreement expires (if the LLC is not perpetual)

A court order ordering dissolution

Taxes

An LLC offers certain tax advantages over a corporation, including the availability of more deductions. Additionally, it is not required to be a separate tax entity like a corporation; instead, it can be a “pass-through entity,” so that the LLC owners (members) report business losses or profits on their personal tax returns.

Learn more about forming an LLC in Maine

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Commonly Asked Questions For Starting a Maine LLC

For federal income tax purposes the profits of an LLC (Limited Liability Company) "pass through" to the personal income of the members/owners. In the case of a single member LLC it is taxed the same as a sole proprietorship (i.e. typically filed on the schedule C of the owner's personal income tax filing). In the case of a multi member member it is taxed the same as a partnership (i.e. a 1065 partnership return is filed with the IRS, with a schedule K-1 being supplied to each partner/member showing the proportional profit/loss allocated to them, with this being filed on the schedule C or E).
NOTE: These are general tax explanations and may not apply to everyone. You should confer with the appropriate accounting/tax specialists to make sure you understand your personal tax liability.

An LLC is typically managed by its members/owners (referred to as member-managed). In that respect an LLC is unlike a corporation, which has a much more rigid and defined management structure, including directors and officers. All owners of the LLC are typically referred to as members, and they can have control and voting interest proportional to their ownership interest, or in proportions different from their ownership interest; however the members agree.

There are no citizenship or residence requirements for ownership of a C Corporation or an LLC. The S Corporation however does not allow nonresident aliens to be shareholders (owner), but any US citizen or resident alien may be a shareholder (owner). You would, of course, require an in state street address for the state to forward official legal and tax correspondence including service of process, known as the registered agent address, but neither residency nor citizenship is required for ownership of a C Corporation or an LLC.

There was a time when almost every state required the LLC to have two or more members, but that is no longer the case. This important change came in response to revised IRS regulations that clearly permitted single-member LLCs. As a result, in most states, if you plan to be the sole owner of a business and you wish to limit your personal liability, you can choose between forming a corporation or an LLC.

The operating agreement is akin to a partnership agreement for a General Partnership or Limited Liability Partnership (LLP). It is an internal contract amongst the members/owners of the LLC, and it lays out such things as ownership interest, member responsibilities, accounting method, adding or removing members, terms for concluding the LLC, etc. It is generally not required by a given state for forming an LLC (with the exception of New York), although it is certainly recommended. When dealing with private companies for financing issues (loans, mortgages, etc.) it may be required by that company. A customizable operating agreement is included with the LLC/Corp Kit.

In the majority of states, The members of an LLC can be individuals, corporations, or other LLCs. These members of the LLC can be out of state residents or even foreign nationals. Furthermore there is no limit to the amount of members that an LLC can have.

The flexibility of an LLC in contrast to an S Corporation is stark considering the S corporations are limited to 75 shareholders who must either be United States citizens or Lawful Permanent Residents.